SecZim penalises securities market intermediaries

THE Securities and Exchange Commission of Zimbabwe (SecZim) imposed onsite penalties ranging between US$500 and US$5 000 on five securities market intermediaries in the six months to June for failing to comply with provisions set under the Money Laundering and Proceeds of Crime Act.

SecZim fined three securities investment managers and two Securities dealing firms.

However, the affected firms were not mentioned.

“The Securities and Exchange Commission of Zimbabwe (SECZim) hereby notifies the market that, from 1 January to 30 June 2023, five (5) securities market intermediaries were penalised for failing to comply with the obligations imposed by the Money Laundering and Proceeds of Crime Act [Chapter 9:24],” it said in a notice.

According to a SecZim update, the highest penalty of US$5 000 was imposed on a securities investment manager for exhibiting weak CDD/know your client (KYC) documentation and not reporting a suspicious transaction.

One securities dealing firm was fined US$500 for not having an official money laundering and proceeds of crime policy (AML/CFT), no evidence of transaction monitoring and not executing staff training.

Another firm was fined US$15 000 for suspicious transactions. After being fined, the firms were recommended to implement a corrective order and SecZim Commission also recommended the removal of a compliance officer.

SecZim added that in accordance with Statutory Instrument 216 of 2022, it also imposed penalties on six Securities Market Intermediaries for late submission of AML/CFT quarterly returns between January and June 2023.

The penalties, which ranged from US$100 up to US$1 000.-chronicle